Illinois Gaming Board approves initial steps for temporary casino at Medinah Temple

State gambling regulators on Thursday signed off on the initial steps toward the opening of a long-debated Chicago casino, voting in favor of licenses for Medinah Temple to serve as the home of a temporary gambling hall that developer Bally’s hopes to open by June.

Whether Bally’s ambitious timeline can be met remains uncertain, as the Illinois Gaming Board still is required to investigate and approve everyone involved in the project, from top investors to subcontractors working on the construction.

The ultimate plan is for Bally’s to open a permanent casino west of the Chicago River on the site of the Chicago Tribune’s Freedom Center printing plant by 2026.

The board voted 3-0 to approve supplier licenses for two corporate entities owned by real estate developer Albert Friedman to serve as Bally’s landlord at the century-old Shriner’s amphitheater at 600 N. Wabash Ave., which most recently housed a Bloomingdale’s Home Store.

The decision to house the temporary casino at the River North landmark, which was not Bally’s initial choice, has been the source of some controversy. Critics have pointed to a $6,000 contribution Friedman made to Mayor Lori Lightfoot’s campaign about two months before it became public that Bally’s, at the city’s urging, planned to use Medinah Temple.

The campaign contribution was disclosed to the Gaming Board on the Medinah license applications. The mayor’s office has denied she had any involvement in the selection of the temporary casino site.

Friedman could not be reached Thursday for comment.

In response to questions about whether the contribution was considered in evaluating the license applications, Gaming Board spokesman Joe Miller said the agency “does not comment on investigations of applicants.”

Thursday’s vote was just an initial public step in a process that could take months or years to complete.

Since Gov. J.B. Pritzker signed a measure into law in 2019 vastly expanding gambling in Illinois, only one of six newly authorized casinos has begun operations — Hard Rock Casino Rockford, which opened at a temporary site in November 2021, nearly two years after its application was submitted to gambling regulators.

Bally’s filed its application with the state for a Chicago casino in August.

During Thursday’s meeting, Gaming Board Administrator Marcus Fruchter detailed the lengthy investigation process underway at the Gaming Board and declined to say when a hearing will be held on Bally’s “preliminary suitability” for an operating license, which is required before casino-related work can get underway in earnest at either the temporary or the permanent site.

Fruchter said he wouldn’t “characterize the investigation other than to say it is moving forward and that Bally’s is cooperating with IGB staff.”

“We will continue to adhere to the established process and follow the facts and the law wherever they lead us,” he said.

After months of deliberation and some community pushback, the City Council in December gave approval for zoning changes needed to accommodate what would be the state’s largest casino, with an exhibition hall, a 500-room hotel, a 3,000-seat theater, 11 restaurants and 4,000 gaming positions, including slot machines and table games.

Among those who opposed the plan was Ald. Brendan Reilly, 42nd, whose ward in and around downtown is home to Medinah Temple. Reilly and a handful of other aldermen raised concerns about traffic, safety and Bally’s financing for the casino project, among other issues, in voicing their opposition and criticizing the Lightfoot administration for rushing the approval process.

Disclosures filed with the Gaming Board show Reilly also has been a beneficiary of Friedman’s political giving, with his campaign fund receiving contributions totaling more than $7,000 in the past five years. Most of that — $5,800 — came in a pair of contributions in June 2019.

Once the casino is up and running, the city’s share of the revenue will be dedicated to shoring up its underfunded police and fire pension systems. The city has estimated it eventually will generate $200 million in annual revenue.

dpetrella@chicagotribune.com

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